Gold has recently displayed a succession of small daily real bodies indicating a state of indecision. Monitor the support at 1284 (21/05/2014 low), as a break would confirm the underlying bearish structure. Another support lies at 1269. Resistances stand at 1304 (22/05/2014 high) and 1331.

Longer term, we are sceptical that the horizontal range between the strong support at 1181 (28/06/2013 low) and the major resistance at 1434 (30/08/2013 high) is a long-term bullish reversal pattern. As a result, a decline towards the low of this range is eventually favoured.

Daily Technical Report